What is NUP? Differences, advantages and disadvantages
NUP or order serial number is a term you can often find in any property ad. Many call NUP the same as priority cards. If as a potential buyer you have a NUP, then you benefit from other potential buyers, such as the choice of a unit with a special price before the property is launched and other attractive promotions provided by the real estate developer.
Many people often confuse the meaning of NUP and reservation fee, in general the two are clearly different. And before buying a house, it is important to know the difference between the two terms. To help you understand more about NUP, let’s see the full explanation!
What is NUP?
NUP is the abbreviation of the purchase order number, or commonly called priority card o VVIP phase. NUP is issued by property developers to identify potential buyers prior to the launch of a new property.
The order number is an opportunity for potential buyers to choose a housing unit before the property is launched on the market. So how do you get this NUP? To get NUP in a property launch event, you only need to pay a certain amount of money at the price given by the developer, depending on each type of unit.
If you received the NUP, then you will be a priority buyer and you will have the opportunity to choose the units in the order of the number you received. Not only do you choose a unit, you can also determine the location and type of unit you want.
Also read: What is above home loans? These are the advantages and disadvantages
The difference between NUP and Reserve Rate
Many confuse these two terms: NUP with Reservation fee. The two terms that are already familiar in the world of property have different meanings.
If NUP is used by property developers as a way to see the enthusiasm of prospective buyers in any new property launch, it is different from reservation fees. A reservation fee is a sign or payment for a unit as a form of purchase commitment to order a property unit.
The nominal booking fee is determined by the developer based on the type and price of the home you are going to buy. If you have made a reservation fee payment in an order, then you will get a special discount when you buy the unit later.
However, if you cancel the purchase, the booking fee that has been paid is non-refundable. This is a consequence that was transmitted during the initial process of payment of the reservation fee.
Unlike NUP, NUP is refundable if you cancel the unit purchase.
Order Number Order: Advantages and Disadvantages
If you look at the reviews above, NUP turns out to be profitable, right? This advantage is not only felt by the real estate developer, but also by you as a potential buyer.
With NUP, you as a potential buyer will have priority in ordering a property unit. You will also be given other benefits, such as choosing the location of the desired unit with a unit price below the market price, then you can also pay the support or the support in installments to 12 months. Also, as a potential buyer, you can choose the location of the unit you want. You can do it too reimbursement if the price offered does not match.
Real estate developers also have the advantage of this NUP program, including being able to discover the enthusiasm of prospective buyers for each new property unit that will be launched. If the delivered NUP is sold, this means that sales targets can also be met more quickly.
But behind these advantages, NUP has disadvantages. Usually the properties offered will be built with a duration of up to 1 year in the future. For those of you who are in a hurry to find accommodation, of course, this system is not suitable. This will also have a negative impact on developers, as they will lose potential buyers due to construction units taking too long.
Also read: Buying a house with cash or a mortgage?
Recently, the NUP program has been widely applied in the world of property business. Because the benefits offered can be an attraction for potential buyers. Not only for potential buyers, the benefits of this program can also be felt by property developers as unit providers. But until now there is still no clear and legal official regulation from the government.
As is known, when property developers launch housing units, they are usually always in the form of design drawings or replicas of units. The developers issue this program as an observation, how enthusiastic potential buyers are about the unit to be launched. Because it is still in the form of a design drawing, in reality the unit could be built according to the expectations of potential buyers. However, it still may not meet expectations. This is something that needs attention, because it is feared that it provides a loophole for fraud that can be exploited by irresponsible parties.
Therefore, a legal umbrella is needed in the form of legal and official regulations from the competent government. The existence of regulations regarding the order number of this order aims to avoid losses that will be caused to both parties, both for future buyers and for property developers.
For those of you who want to buy a home unit, before obtaining the order number, be sure to look for complete information about track record developers involved. This is useful for your consideration to make a decision before buying a unit. In addition, with a good and competent track record from the developers, it can prevent unwanted things.
I hope this article helps you make your decision.